“Trading was not without its difficulties with the supply of new cars still unpredictable and increasing interest rates also having an impact on finance rates of new and used vehicles.” Resource had also been a challenge but the business has “invested significantly in training”.

Retailers ‘remain a cornerstone’

With increasingly complex functions in customer interaction, aftersales, used car management plus ever-more advanced vehicles, retailers remain a cornerstone, reports the latest Cox Automotive Insight Quarterly.

“The question is not whether dealers are necessary, but how they can adapt to the ongoing agency model debate and continually prove their value to manufacturers,” said IQ director Philip Nothard.

“The physical and interactive aspects of dealerships persist as indefensible, a testament to their enduring relevance despite the industry’s twists and turns.”

Nothard says that retailers must continually show OEMs they are “worth their salt and here to stay. That physical interactive element will always be with us – and will no doubt serve as proof of their importance, no matter the industry developments we are likely to see”.

https://tinyurl.com/mwnzy3tv

 

WORLD NEWS

Ford pauses EV certified retailer program

Ford is now telling US retailers to pause the implementation of its controversial electric vehicle certification programme as it works on changes that will be revealed to the dealer council in early June. “There’s a lot that we’ll be reviewing,” said president of Ford Blue Andrew Frick.

The “rapidly changing EV market” has already been discussed in 11 meetings with around 1000 retailers across six cities. Ford expects to lose up to $5.5bn (£4.3bn) on its EV business unit this year.

https://tinyurl.com/ruuxfa7x

 

US retailer accuses Mitsubishi of ‘false promises’

Oakes Auto, a terminated Mitsubishi retailer in Kansas City, has accused the OEM of “mistreating its dealers by making false promises” in a multimillion dollar lawsuit. It says Mitsubishi reneged on a deal to provide more vehicles in return for the retailer upgrading its advertising displays. It also accuses Mitsubishi of sabotaging a negotiated sale of the business to a proposed purchaser.

Mitsubishi declined to comment.

https://tinyurl.com/y5upb375

 

 

STOCKWATCH

Closing prices on 24 May 2024 and weekly change

Auto Trader Group 747.8p (+17.8p / +2.4%)

Caffyns 500.0p (n/c)

Halfords 154.0p (+7.2p / +4.7%)

Inchcape 822.5p (+14.5p / +1.7%)

Motorpoint 143.0p (+1.0p / +0.7%)

Pinewood 342.0p (+17.0p / +5.0%)

Vertu 78.7p (-0.5p / -0.6%)

 

 

COMING UP

Wednesday, BRC shop price index

Thursday, Auto Trader full year

Thursday, Nationwide house price index

Friday, UK consumer credit

 

 

MONEY MATTERS

What business wants from the election

As the starting gun has been fired on the next election, “business is desperate for confidence, stability, investment,” said PwC’s Kevin Ellis. The past few years have left UK plc “feeling decidedly bruised”.
Matthew Beesley of FTSE 250 fund manager Jupiter says the election presents a fresh opportunity to invest in Britain after Brexit. “We now have a chance to create a fresh slate and have a government with a mandate which shows in their policies they are pro-business and keen to attract capital”.

https://tinyurl.com/4b9wpuvw

 

State pension ‘unaffordable by 2035’

The state pension could become unaffordable by 2035 if Labour and the Conservatives protect the ‘triple lock’. The Adam Smith Institute calculates this is when the cost of paying the benefit will outstrip National Insurance Contributions as the ratio of workers to pensioners shrinks. Action is necessary to cut the size and scope of the benefit, says the think tank.

https://tinyurl.com/yckd7pay